CryptoLogic Q3: revenue plunges 31%
CRYPTOLOGIC HAS RECORDED a 31% year-on-year plunge in third-quarter revenue, to US$9.6m from US$14m at this point last year.
CRYPTOLOGIC HAS RECORDED a 31% year-on-year plunge in third-quarter revenue, to US$9.6m from US$14m at this point last year.
The company blamed the fall, which was predicted in a trading update last month, on a slower than expected roll-out of games to licensees and sluggish wagering activity in the seasonally slow month of August.
However the company’s managed to near halve its net loss, to US$3.4m for the last quarter from U$6.7m for the same period in 2008, reflecting cost savings associated with CryptoLogic’s divesting of its poker network and accompanied restructuring, which enabled it to cut quarterly operating expenses by 25% on a year-on-year basis.
CryptoLogic chief executive Brian Hadfield said: “Despite a disappointing third quarter, CryptoLogic’s business strategy is delivering tangible progress, albeit at a slower pace than anticipated.”
CryptoLogic’s third-quarter casino revenue fell 30% year-on-year, to US$7.1m from US$10.1m in 2008, in part due to a US$0.6m drop due to jackpot wins above historic levels.
Poker revenue plunged to US$0.5m from US$3.2m last year, reflecting the migration of Cryptologic’s poker operations and customers to the Boss poker network this time last year, and branded games revenue hit US$0.78m.
The third quarter also saw the company sign multi-year game licensing deals with operators including Totesport, Virgin Games, and a three-year full casino licensing deal with Betsafe, bringing its total number of licensees to 29.
CryptoLogic said it remained on track to have 80 branded games live with licensees by year’s end, however, it expected continued delays in roll-out and economic conditions to result in a net loss in the fourth quarter.
A company statement also revealed it will be reviewing the value of its assets in the light of current performance and economic environment, likely to result “in a significant impairment charge in Q4.”
However Brian Hadfield said the company’s lower cost base, its growing customer roster and a third consecutive quarter of increased revenue from branded games reflected that the company’s plan of “returning to profitability and long term growth” remained on track.